EURUSD Bullish channel with a breakout above 1.0950!
During Monday's Asian session, the EUR/USD pair experienced modest declines, primarily due to renewed demand for US dollars. The rise of the EUR seems constrained due to current macroeconomic prospects. Currently, the pair is trading near 1.0935, with a 0.08% loss for the day. Economic data from Germany indicates an improvement in the German IFO business climate index in November, but this appears to have little significant impact on the euro's performance.
A moderate expansion in private sector economic activity is anticipated in the United States for November, but disappointments in the data could affect the resilience of the US dollar (USD) in the American session. Additionally, the price is currently at 1.0950 after a false breakout on the daily chart. I expect a potential price retracement to two key levels, the first at 1.0850 and then at 1.0760, corresponding to the 38% Fibonacci retracement. Conversely, a breakout to the upside of the 1.0950 level on a daily chart could suggest an upward movement with the objective of reaching the June highs at 1.12.
Wishing everyone a successful trading day. Greetings from Gaia.
A moderate expansion in private sector economic activity is anticipated in the United States for November, but disappointments in the data could affect the resilience of the US dollar (USD) in the American session. Additionally, the price is currently at 1.0950 after a false breakout on the daily chart. I expect a potential price retracement to two key levels, the first at 1.0850 and then at 1.0760, corresponding to the 38% Fibonacci retracement. Conversely, a breakout to the upside of the 1.0950 level on a daily chart could suggest an upward movement with the objective of reaching the June highs at 1.12.
Wishing everyone a successful trading day. Greetings from Gaia.
Comment:
The EUR/USD is currently consolidating around 1.0950, retracting from the nearly three-month highs reached at the beginning of Tuesday at 1.0965. The pair is facing some downward pressure as the US dollar gains stability amidst a mixed market sentiment and in anticipation of a series of Federal Reserve (Fed) speeches. Statements from European Central Bank (ECB) officials also remain a focal point of attention. ECB President Christine Lagarde warned that headline inflation might experience a slight increase in the coming months. Speaking to the European Parliament, she noted that growth is likely to remain weak. Her remarks were not surprising, and it is expected that the ECB will keep interest rates unchanged. With the US dollar still showing some vulnerability, the EUR/USD maintains a bullish tone, and further gains seem likely, at least until market focus shifts to the growth divergence between the United States and the Eurozone. My short-term view remains bearish, while my medium to long-term outlook is bullish.